Daily Archives: June 3, 2013

Home “flipping” trend returns, threatening higher prices | North Salem Real Estate

“This is our production board,” he said, pointing to a white board, filled with black marker. “When it fills up, it means that I’m really busy.”

Manner now has 18 homes that he’s fixing — and flipping. He pointed to one home he bought for $330,000, and plans on selling for $629,000.

The goal, he said, is to double his profit.

The current frenzy, he said, took off in January. That’s when Charlotte Dewaele began her search.

“I thought we were gonna get a home right away,” she said. She’s already bid on 15 homes.

“We’re getting beat out by people with cash, by investors, and by people putting in offers that are just so much higher,” Dewaele said.

Her expectations were also higher. Her initial hope was to have a home about 1,200 square feet.”Then that went down to a thousand, and now it’s just about anything,” she said.

Her search for anything led to a California house marketed as having “charm.”

The entire house is 672 square feet and with a list price of $268,000.

“It’s overpriced, but it’ll probably sell for a lot more than it’s priced at right now,” Dewaele said.

Dewaele’s search is getting more urgent. She’s now six months pregnant. She’s ready to buy a house and has the money, but she can’t.

“It’s very frustrating,” she said.

Laura Key, Dewaele’s realtor describes the current housing market as “a mess.” Each time they find a house, they lose out to those cashing in.

“There’s always multiple offers. Then it’s sold within 24 hours. Then, less than 30 days, back on the market,” Key said.

The flipped houses go for at least $50,000 to75,000 more than what they purchased it for.

Dewaele said she can’t bid that high without “overextending,” as so many others did before the last housing boom went bust.

And she doesn’t think she’ll find a home before her baby is born. “I’ve kind of lost hope,” she said.

 

Home “flipping” trend returns, threatening higher prices – CBS News.

Construction spending continues to seesaw | Waccabuc Real Estate

Construction spending in the U.S. continues to seesaw, keeping the market recovery on a bit of a roller coaster.

After dropping in March, construction spending rose to $860.8 billion in April. This is 0.4% above the revised March estimate of $857.7 billion, according to the U.S. Census Bureau.

Furthermore, April’s spending is 4.3% above the year-ago estimate of $239.8 billion.

Spending on private construction was 1% above the revised March estimate of $595.9 billion, rising to $602 billion in April.

Residential construction spending came in at a seasonally adjusted rate of $301.9 billion in April, down 0.1% from March’s estimate of $302.2 billion.

Additionally, nonresidential construction was at a seasonally adjusted rate of $300.1 billion in April, above 2.2% from March’s estimate of $293.7 billion.

In April, the estimated seasonally adjusted annual rate of public construction spending was $258.8 billion, up 1.2% from the revised March estimate of $261.8 billion.

 

Construction spending continues to seesaw | HousingWire.

Homebuilders are building homes Gen Y wants: NAHB | South Salem Real Estate

Since June is National Homeownership Month, the National Association of Home Builders is urging Gen Y’s to invest in a home.

More than 80% of Gen Y home buyers — people born in 1977 or later — said in NAHB’s 2012 consumer preference survey that they prefer an energy-efficient home.

“As the economy recovers and young people who had to live at home with their parents move forward with their lives and achieve their dreams of homeownership, home builders are delivering homes that cater to the floor plans, features and affordability that this generation desires,” said Rick Judson, chairman of NAHB.

 

Homebuilders are building homes Gen Y wants: NAHB | HousingWire.

Saving property values in the wake of foreclosure | Cross River Real Estate

Asset management firms are in a constant race to preserve local home values through the effective upkeep of vacant properties.

At HousingWire’s Real Estate Expo (REX Annual) on Monday, experts spoke on the subject of “Help Us Save Our Neighborhoods.” The idea behind the discussion was to visit code compliance issues, revealing effective ways to ensure property values are not weighed down by troubled and vacant properties.

Members of the panel included: Robert Klein, chairman ofSafeguard Properties; Jim Taylor, senior vice president withWells Fargo Home Mortgage; Kelvin Beene with the City of Fort Worth; Jeannie Fantasia, vice president of SecureView; and Eric Miller, executive director with the National Association of Mortgage Field Services.

Taylor said, “If you look at the REOs we sold last year, on average the customer has not made a payment in 16 months. If that is the case, that customer is really in distress.”

If we cannot help the borrower, we try to find ways to help them move on while attempting to get the house back on the market, Taylor explained. But to do so, the house has to be in the best shape possible.

“We cannot stop the situation but there are ways that we can improve the communication. One of the things that has been a constant is the stigma that is tied to a boarded property,” added Jeannie Fantasia with SecureView.

To stay abreast of how property preservation firms are coming along in preserving home values, Taylor with Safeguard announced the creation of a grading system that will score houses to show how they have progressed from REO to the day the home is sold.

REO homes take longer to get back on the market, so in the process, it is imperative that communication about the home’s status is clear and up-to-date, the panelists suggested.

 

Saving property values in the wake of foreclosure | HousingWire.

Homebuyers weigh in before renovations | Katonah Real Estate

Instead of fixing up an older home and hoping that a buyer likes the improvements, builders are welcoming buyers into the process much earlier, allowing them to customize the renovation with their choice of countertops, cabinets, colors, tile, and more, Time reports.

Normally, a model home is a brand-spanking new, never-lived-in property that serves as a showcase for a new real estate development. A company in Baltimore called Charm City Builders is in the process of building its own model home—only theirs is a rowhouse that’s more than 100 years old.

 

Homebuyers weigh in before renovations | HousingWire.

Another subprime bomb on the way? | Bedford Hills Real Estate

The Telegraph says demand for subprime bonds surged in the first part of 2013, leading global investors to fear a repeat of the financial crisis.

The demand for subprime bonds is higher with yields on Treasury bonds still low, The Telegraph added.

The paper quotes Peter Schiff, head of investment firm Euro Pacific Capital, as saying it seems the financial markets are willing to travel down the same road again.

 

Another subprime bomb on the way? | HousingWire.

Networking and social media: A recipe for REO success | Pound Ridge Realtor

Brokers working in the REO space face stiff competition, but social media — when used correctly — is leveling the playing field, making it easier for tech-savvy professionals to gain a foothold in the space.

Social media, conferences and networking all play a role in a professional’s success.

Experts at HousingWire’s Real Estate Expo (REX) discussed how growing your REO business starts with you.

The panel featured Windy Keefe, manager of business development withREO Network; Brent Taggart, senior vice president with Green River Capital; Kirby Pearson with Pearson Realty Group; Lauretta Martin with The Martin Group and TMG Properties; Marcia Toms withPEMCO; and Patti Donovan with Freddie Mac.

When it comes to standing out as a broker, Taggart said a simple letter of recommendation makes a world of difference, especially when it’s exposed online or through simple social media tools.

In addition, he said people should be active and involved in boards, including the National Association or Realtors, rather than simply limiting their involvement to paying membership dues.

Meanwhile, Donovan said, “A strong thing for us is people who are making a difference in peoples lives that live in the communities that they work in.”

But, perhaps, the greatest change in real estate networking revolves around the social media space.

Social media is a good way to connect and help build that relationship. It should be an extension of a way to stay in contact,” said Toms.

 

Networking and social media: A recipe for REO success | HousingWire.

4 ways to create your social media strategy and wipe out 80 percent of your competition | Bedford Corners Realtor

OK, the title is a little dramatic. But there is truth to this. 

Late last week, the 2013 Social Media Industry Report was released by Michael Stelzner of Social Media Examiner. The insightful, and sometimes surprising, 43-page report is packed with trends and statistics based on a 3,000-marketer survey that focuses squarely on the social media platforms commonly used in real estate marketing.

It’s quite clear that social media is still one of the most popular areas of marketing that businesses consider, but what is even more obvious is that most marketers are still quite overwhelmed AND confused with the number of platforms. They still are very unsure about how to use them, even though the list of platforms keeps growing. So what do these numbers and insights tell us about how we in real estate approach social media?

Here are some highlights I found interesting:

  • 90 percent of marketers still want to know which tactics work best.
  • 88 percent of marketers would like to know how best to reach and engage their audience.
  • 83 percent of marketers are thinking of social media differently. They are thinking about how it fits (under the larger umbrella called “marketing”) into their business by creating a social strategy.
  • Only 26 percent of marketers are measuring their social media activities.
  • Only 37 percent of marketers think Facebook is effective in their marketing, yet it is overwhelmingly the No. 1 platform of choice.
  • Only 26 percent of marketers are optimized for mobile.
  • Blogging and Google Plus are moving up the ladder in future plans for marketers.

Most of these numbers translate to the constant changes and confusion in social media, the pull of the distraction and noise, and lack of real understanding of how much time and energy social media should be part of your marketing playbook. So, without going too deep, here are some main things to keep your focus on when defining your social strategy for real estate.

 

4 ways to create your social media strategy and wipe out 80 percent of your competition | Inman News.

LinkedIn ‘Contacts’ — a quick tour | Chappaqua Realtor

Some of you may be using it already.

Some of you may have skipped the tutorial on your newly updated LinkedIn page.

Some of you may not have the option to use it yet.

Some of you may not have been to your LinkedIn page for months. ; )

Either way, here’s a quick overview of LinkedIn’s new “Contacts” feature. I encourage you to check it out.  I had the chance to be part of their private beta, and have been playing around with it for the past 6-9 months; I definitely notice a difference in the way I build and maintain my network.

First, let us all understand that this is NOT a CRM. Although the team at LinkedIn could potentially go in this direction, their current release is better suited as a modern-day Rolodex and personal secretary.

Your network is a valuable piece of your business and personal life; and often, you can’t predict when you’ll need to call on it. Managing your network takes skill and commitment, but, if you do it right, making that call is rarely a problem.  Here’s how LinkedIn “Contacts” can help:

Sync & manage contacts from multiple sources

Most of our networks are scattered across many platforms. LinkedIn now allows you to sync up with multiple sources, including Gmail, Yahoo Mail, Outlook, Facebook, Twitter, Evernote and CardMunch.

 

LinkedIn ‘Contacts’ — a quick tour | Inman News.

Penguin 2.0 Bottom Line: Quality Content Prevails | Armonk Realtor

The web is abuzz with Google’s latest algorithm update with much focus on the direction of Google search and the ramifications it holds for SEO and digital marketers. Penguin 2.0 is one more example of what digital marketing experts have been preaching for years; delivering a positive user experience through quality content and quality web assets creates a quality outcome. And, this is what Google wants to reward.

Quality Content

Google’s on-going quest appears to be to filter out the attempted nonsense by some marketers so that the user search experience produces valuable results. Poor search marketing and editorial practices are disenfranchised to this objective. Audiences are demanding it. As a marketer, failure to deliver valuable content will ensure that Google and your audience will tune you out or worse, turn you off.

Good content delivers a relevant connection that invokes a response through humor, shock, mystery, emotion and/or just plain valuable knowledge. My favorite article on quality content was written by Brad Shore with the Content Marketing Institute. He identifies quality content as being “jargon-free, written in an appropriate voice and style, stimulates a response and is properly structured.” More importantly, he identifies the business value of quality content by emphasizing that it:

  • Elevates the brand
  • Increase brand awareness
  • Helps generate leads and referrals
  • Increases customer loyalty
  • Differentiates your business in a powerful way

 

Penguin 2.0 Bottom Line: Quality Content Prevails | Find and Convert.